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The outcomes of inadequate risk management span the gamut from financial losses to a loss of customer goodwill that may well threaten the long-term viability and survival of a firm. Today, with an increasingly unforgiving regulatory environment and legislation such as Sarbanes-Oxley that requires business technology systems to function without error, executives need to be concerned about risk management more than ever before.
Business risks can be both internal to the firm, such as rolling out an inadequately tested system, as well as environmental, in the form of an unanticipated natural disaster. This two-sided model creates a challenge for business and technology executives.
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